Prices Should Rise

[endicom]

Townhall
John Stossel
Sept. 19, 2018

Officials in states hit by Hurricane Florence are on the lookout for "price gouging."

People who engage in "excessive pricing" face up to 30 days jail time, said North Carolina's attorney general. South Carolina passed a "Price Gouging During Emergency" law that imposes a $1,000 fine per violation.

"Gouging" is an issue during every disaster because when supplies are short, some merchants raise prices.

These are "bad people," said Florida Attorney General Pam Bondi angrily during a previous storm.

More... https://townhall.com/columnists/johnstossel/2018/09/19/prices-should-rise-n2520198

[thackney]

This example is a perfect example of why prices should be allowed to rise.

...I don't praise greed. Pursuing profit is simply the best mechanism for bringing people supplies we need. Without rising prices indicating which materials are most sought-after, suppliers don't know whether to rush in food, or bandages, or chainsaws.

After Hurricane Katrina, one so-called gouger was John Shepperson of Kentucky. Watching news reports, he learned that people desperately needed generators.

So Shepperson bought 19 of them, rented a U-Haul, and drove it 600 miles to a part of Mississippi that had no electricity. He offered to sell his generators for twice what he paid for them. People were eager to buy.

But Mississippi police said that was illegal. They confiscated Shepperson's generators and locked him up.

Did the public benefit? No. The generators sat in police storage (I suspect some cops took them home to use while Shepperson sat in jail)....

[Sanguine]

Of course they should.  But, we've got to "level the playing field" and assure fairness. 

[endicom]

This example is a perfect example of why prices should be allowed to rise.

Quote
...I don't praise greed. Pursuing profit is simply the best mechanism for bringing people supplies we need. Without rising prices indicating which materials are most sought-after, suppliers don't know whether to rush in food, or bandages, or chainsaws.

After Hurricane Katrina, one so-called gouger was John Shepperson of Kentucky. Watching news reports, he learned that people desperately needed generators.

So Shepperson bought 19 of them, rented a U-Haul, and drove it 600 miles to a part of Mississippi that had no electricity. He offered to sell his generators for twice what he paid for them. People were eager to buy.

But Mississippi police said that was illegal. They confiscated Shepperson's generators and locked him up.

Did the public benefit? No. The generators sat in police storage (I suspect some cops took them home to use while Shepperson sat in jail)....

Yes, Shepperson provided a service otherwise unavailable. Should he have made the effort and taken the risk of finding buyers without being compensated? Of course not.

[thackney]

Yes, Shepperson provided a service otherwise unavailable. Should he have made the effort and taken the risk of finding buyers without being compensated? Of course not.

And if prices are not allowed to rise, no generators beyond normal local stock will be sold.